Organizational chart of a company. When it comes to managing a business, one of the most important tools that entrepreneurs and beginning professionals must master is the organizational chart. This graphic scheme not only illustrates the company's hierarchical structure, but also clearly defines the responsibilities of each department and team members.
Therefore, we will show here what an organizational chart is, why it is very important, its main types and the professional and accurate step-by-step guide on how to set one up for your company. You want to receive tips and information to set up your own business. So subscribe to this channel and stay up to date with everything you need to know to open your own company.
To try to make this subject clear, we will explain the following points: 1. WHAT IS A COMPANY ORGANIZATION CHART 2. WHY IS IT SO IMPORTANT TO DEVELOP ONE 3.
MAIN TYPES AND MODELS 4. HOW TO SET UP ONE IN 9 PROFESSIONAL STEPS So, let's go there! 1.
WHAT IS A COMPANY ORGANIZATION CHART Basically, it is a visual representation of the organizational structure of a company. In other words, it shows the hierarchical relationships between the different departments, teams, positions and collaborators. Being a graphic representation of the organizational structure of a business.
In other words, an organization chart is an essential tool for structuring teams within a company. Because its main objective is to ensure that each employee performs their functions efficiently and appropriately. 2.
WHY IT IS SO IMPORTANT TO DEVELOP AN Organizational chart provides a clear view of the company's hierarchical structure. This greatly helps employees understand the organizational functioning of a business. Punctuating each position, function and teams well.
This is especially important in growing companies where the organizational structure can become more complex over time. Furthermore, the organization chart helps to establish clear responsibilities for each function and department within the company. This avoids conflicts of competence and duplication of efforts, ensuring that each employee knows exactly what their responsibilities are and to whom they should report.
At the same time, a well-designed organizational chart facilitates communication within the company. Because it allows employees to know who they should communicate with to obtain information, make decisions or resolve specific problems, for example. As a result, it helps to optimize and speed up work processes and avoid delays caused by a lack of clarity in the organizational structure.
3. MAIN TYPES AND MODELS 1. VERTICAL ORGANIZATION CHART The vertical model, also known as classic or hierarchical, is one of the most common used by companies.
In this type, positions are organized in order of importance, following a descending hierarchy. Thus, those who occupy the highest levels hold the most authoritative positions within the organization. Therefore, among the advantages of this type of organization chart, the ease in creating career plans and understanding the workflow stands out .
2. HORIZONTAL ORGANIZATION CHART This organization chart does not prioritize the hierarchy of positions, being more suitable for informal business environments. In this type, there is greater autonomy granted to employees, who have an active voice in decision-making processes and can perform different functions.
Thus, its structure is organized horizontally, emphasizing that power relations are not the focus, but maintaining the idea of organization. 3. CIRCULAR ORGANIZATION CHART Also known as “Radial”, the focus here is the importance of teamwork, representing employees side by side in a circular format.
In this way, the most relevant figure in the company is in the center of the circle. Like the CEO or president, while the others are positioned around, towards the ends. This model is most used by businesses that value collaboration between their members rather than hierarchy between them.
4. LINEAR ORGANIZATION CHART OF RESPONSIBILITY (OLR) This type focuses on functions, tasks and responsibilities of each position. Instead of its hierarchy.
However, it is not recommended for companies with highly complex processes. Mainly due to the fact that, when presenting each of the activities in each area and their interrelationships, the organizational chart can become excessively cluttered. 5.
ORGANIZATION CHART IN BAR This model stands out for the hierarchy of the company's positions, representing employees through bars arranged vertically. This way, the size of each bar corresponds to the level of authority of each professional in the company. Whereas the highest position is represented by the longest bar, while others decrease according to the level of the hierarchy.
6. MATRICIAL ORGANIZATION CHART Similar to the vertical organization chart in its structure, the matrix model is adopted by companies with greater flexibility, where positions and functions are not rigidly defined. Typically used by companies focused on executing specific projects, this format presents temporary structures that mix different departments and teams.
7. SECTOR ORGANIZATION CHART This type is aimed at a specific sector of the company. Therefore, it is useful for large businesses with many employees and highly structured teams.
4. HOW TO ASSEMBLE ONE IN 9 PROFESSIONAL STEPS 1. UNDERSTAND THE EXISTING ORGANIZATIONAL STRUCTURE Before starting to draw the organizational chart, it is essential to understand the company's current organizational structure.
This includes identifying departments, teams, positions and the hierarchical relationships between them. This way, list all the functions and positions of the company. This way, you will understand what you need to organize in a detailed, planned and organized way.
2. DEFINE THE OBJECTIVE OF THE ORGANIZATION CHART Another very important point that many professionals overlook is defining a clear objective when developing the organization chart. This way, the development of the organization chart to truly organize the structure of your business will be much clearer and more assertive .
In other words, the organization chart will make much more sense and will be very functional. 3. CHOOSE THE APPROPRIATE FORMAT Now, study and define which format best adapts to the structure and needs of your company.
According to the organizational chart types and models that we showed previously. 4. IDENTIFY POSITIONS AND DEPARTMENTS List all positions and departments in the company, from the highest levels of management to operational-level employees.
Therefore, as we said before, make sure to include all functional areas and their respective responsibilities. Including possible new positions or functions that need to be created to meet all the demands and needs of the company. 5.
ESTABLISH HIERARCHICAL RELATIONSHIPS Define supervisory and reporting relationships between positions and departments. This will help you clearly visualize the chain of command and lines of authority within the company. 6.
USE APPROPRIATE TOOLS There are several tools available to create organizational charts. From specialized computer programs to free online applications. Therefore, choose a tool that is easy to use and offers features that suit your needs and style.
Here, you can use any program you like. But we are going to recommend 3 free programs that are widely used by experienced professionals to develop a successful organizational chart. The first is Notion.
Which is an application for organizing tasks and projects. It’s an “all-in-one” productivity platform. In other words, several functionalities in one place.
The other is Trello. Which is a widely used tool for project management. It is online and is a very versatile and practical platform.
And that is precisely why it can be used collaboratively. And the third is Canva. Which is an online application with a very simple and intuitive design.
All of these tools work great to develop a professional organizational chart, functional and visually easy to understand. If you want to learn about these tools in more detail, we have videos that explain each of them in a very practical way. If you want to watch them, we'll leave the links here in the description, okay?
7. DESIGN THE ORGANIZATION CHART Start by drawing the main positions and departments at the top of the organization chart and add the lower hierarchical levels. If necessary, use standardized symbols to represent each position and connecting lines to show the relationships between them.
Keep in mind that the most important thing about the organizational chart is to make the functions and hierarchy of each position clear. And, most importantly, that it is easy and simple to understand. 8.
PRESENT TO THE TEAMS After checking all the information carefully and in detail , present the organizational chart to all employees. This is essential to ensure clarity for everyone. In other words, the document must be accessible to and understood by everyone.
9. REGULARLY REVIEW AND UPDATE After creating the organizational chart, review it carefully to ensure it is accurate and complete. Also, remember to update it regularly as changes occur in the company's organizational structure.
Did you see how the organization chart is an essential tool for all types of companies? Keep in mind that by understanding what an organization chart is and how to apply it to your own business, you will create a solid foundation for your business's growth and success. Remember that an organization chart must be flexible enough to adapt to changes in the company, ensuring that it continues to be a useful tool for guiding organization and resource management, combined?
Furthermore, the tips we show here are very important, but they are not the only ones. So, if you know anything else that we didn’t show, write in the comments and share with us! And just to recap what we talked about here: 1.
WHAT IS A COMPANY ORGANIZATION CHART 2. WHY IS IT SO IMPORTANT TO DEVELOP A 3. MAIN TYPES AND MODELS 4.
HOW TO SET UP ONE IN 9 PROFESSIONAL STEPS We hope you enjoyed it! And if you want to know more about how to set up and manage your own business, visit our YouTube channel where we have several videos on this subject, okay? And if you liked it, share this video with your friends and family to help them too!
If you want to prepare even more, download our free e-book now with 11 key questions to find out if you are ready to open your own business or not. Let's leave the download link here in the description of this video, okay? And be sure to subscribe to this channel and stay up to date with all our news on how to set up and manage your own business.
And if you can, leave your like to help this channel. A hug and see you next!
